The
latest collapse comes after hedge fund Cable
Car Capital wrote in a blog post that it was shorting
the company, questioning what it said were “host of red flags”
unrelated to the recent account suspensions.

In a post on its website, the hedge fund alleges
there are a number of "unanswered questions" about the
business.

Among its main concerns is the restatement of
2013 revenues at Plus500’s UK operation, which saw them reduced
by a whopping 80%.

Sources
close to Plus500 told Business Insider that this restatement was
to do with a change in accounting practices that changed the way
the UK business paid and was charged for services provided by its
Israeli parent company.

UPDATE

It reveals that the Financial Conduct Authority (FCA) forced the
company the appoint someone to go over its anti-money laundering
procedures back in January, which is what led to the account
freezes.

Plus500 said 40 people are currently working to get suspended
customers back online but the process will likely take weeks.
It's also not taking any new customers until it has agreed on
appropriate anti-money laundering checks with the consultant
appointed to review its systems.

Chief executive Gal Haber said:
"The current situation
is regrettable, and we apologise to customers whose accounts are
frozen; we intend to resolve these issues within as short a time
as possible."

The update made no mention of
Cable Car Capital's blog post. Sources close to the company said
it is not required under market regulation to correct inaccurate
rumours.

The company said there will be a further update at its annual
general meeting next Wednesday. You can read the full statement
here.